Holding Effective Kaizen Events

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Recorded webinar: http://slidesha.re/1smdA1y

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Kaizen Events offer not only an effective means for achieving rapid results, but also a powerful venue for teaching new mindsets and behaviors. Done well, kaizen events help build skills in problem-solving, cross-functional collaboration, and making carefully thought out decisions more quickly. Leadership learns how to let go of the need to micro-manage and the front lines become more knowledgeable and deeply engaged in solving business problems.

In this webinar, you will learn how to:

• Properly scope an event
• Form an effective team
• Structure & prepare for the event
• Hold effective daily briefings
• Properly facilitate the event

Published in: Business

Holding Effective Kaizen Events

  1. Webinar August 28, 2014 Holding Effective Kaizen Events 1
  2.  Consultant / Coach / Facilitator / Trainer: Lean transformation & business performance improvement in all industries.  Teacher: University of California, San Diego  Author & Speaker: Karen Martin, President @KarenMartinOpEx 2013 Shingo Prize winner! www.ksmartin.com/subscribe 50% off for limited time on Amazon! 2
  3. Kaizen Kai = Change Zen = Good Continuous Improvement 3
  4. The People Who Do the Work are the Experts 4
  5. Engagement Drivers: The Three C’s Connection ControlCreativity The Outstanding Organization, pp. 155-158 To purpose, annual goals, immediate supervisor, peers, customers Heavy involvement in decisions that influence how they do their work. Full use of talents, capacities, potentialities & skills 5
  6. Kaizen Event – Definition A two- to five-day focused improvement activity during which a sequestered, cross-functional team designs and implements improvements to a defined process or work area, generating rapid results and learned behavior. Karen Martin & Mike Osterling The Kaizen Event Planner www.ksmartin.com/TKEP 6
  7. When to Do a Kaizen Event • Need for focus and speed (immersion) • Process is highly cross-functional • Desire to build stronger working relationships • Desire to teach problem solving via PDSA 7 When NOT to Do a Kaizen Event • When it’s the primary or only means of making improvement in the organization
  8. Kaizen Event Outcomes • Higher performing processes • Documented, measurable processes (with clear ownership) • Stronger working relationships • Deeper problem-solving skills • New mindsets, behaviors & habits – Rapid decision making; rapid execution – Need fewer & fewer KEs as you progress with transformation • Clearer roles between leadership and frontlines • Energized & engaged workforce 8
  9. Tie Kaizen Events to Something Larger (A3 Problem Solving or Value Stream Transformation) Avoid “Drive-by Kaizen Events” “Kamikaze Kaizen Events” “Random Acts of Kaizen” 9
  10. 10 Develop hypothesis Conduct experiment Measure results Refine Standardize Stabilize
  11. 5-Day Kaizen Event: Typical Structure Day 1 & 2 (Plan) Day 3 & 4 (Do, Study) Day 5 (Study, Adjust) Kick-off Analyze current state Perform root cause analysis Design future state Interim briefing Design & test improvements Obtain feedback Interim briefing Refine & finalize improvements Train process workers & stakeholders Final presentation CELEBRATE! 11
  12. Value Stream Mapping and A3 Management 12
  13. Value Stream Mapping has no place in a Kaizen Event 13 www.ksmartin.com/VSM
  14. Work: Degrees of Granularity Value Stream Process Process Process Step StepStep 14 Macro Perspective • Define strategic direction (“what”) • Heavy leadership involvement • Value Stream Mapping Micro Perspective • Identify the tactical “how” • Heavy frontline involvement • Metrics-Based Process Mapping
  15. Source Refrigeration & HVAC, Inc. Current State Value Stream Map Service Delivery Created February 11, 2009 CONFIDENTIAL Customer Receive customer call Call Center PT = 2 mins. %C&A = 60% Review& Post Invoices Posting Admin PT = 3 mins. %C&A = 98% Batch: 1x/day 0.0833  hours 2 minutes 2 hours 5 minutes 1.5  hours 90 minutes 1.25 hours 75 minutes 2 hours 120 minutes 4 hours 5 minutes 10.7  hours 10 minutes 48  hours 25 minutes 4 hours 3 minutes 10.7  hours 10 minutes 2 hours 4 minutes 480  hours Lead Time = 572 hours Process Time = 349 minutes Select & Dispatch Tech Dispatcher & Service Manager PT = 5 mins. %C&A = 60% Make Repair; Call to raise the NTE Tech PT = 120 mins. %C&A = 40% Complete Call in GP Dispatcher PT = 5 mins. %C&A = 80% Review Service Call Data Service Manager PT = 10 mins. %C&A = 50% Batch: 2x/day ReviewOpen Ticket Report Billing Admin PT = 25 mins. %C&A = 75% Upload time card Tech PT = 0 mins. %C&A = 70% Batch: 1x/day Close call in Verisae Account Manager (West) PT = 1 mins. %C&A = 90% Batch: 1x/day Process Time Cards Payroll Admin PT = 10 mins. %C&A = 90% Batch: 1x/day Process A/P A/P Admin PT = 15 mins. %C&A = 85% Batch: 1x/day Tech Assess Problem PT = 90 mins. %C&A = 90% Tech Special Order Part Tech Pickup Part at Parts Store PT = 75 mins. %C&A = 95% Tech Get Part from Truck PT = 0 mins. 120 m. Great Plains Verisae (Customer) Review Invoices; Close in Verisae (Pac) Account Manager PT = 10 mins. %C&A = 85% Batch: 3-5xper wk Enter Invoices into Verisae & Excel; Mail Invoices Billing Admin PT = 4 mins. %C&A = 95% Batch: 1x/week Excel Spreadsheet (Customer) 40% Receive Cash; Post Payment Collections 75 m. 120 m. 240 m. 640 m. 6 days 240 mins. 640 m. 120 m. 60 days90 m.5 m. 30% 30% Supplier Lead Time to Invoice = 86.2 biz hrs Lead Time to Cash = 131 biz days Process Time = 5.8 biz hrs. ActivityRatio = 6.8% RFPY = 1.1% Repair Service Delivery – Request to Cash Current State Value Stream Map
  16. Future State Value Stream Map Source Refrigeration & HVAC, Inc. Service Delivery T&M Target example, refrigeration component repair, non-peak season (35 work orders per day) Created February 13, 2009 CONFIDENTIAL Customer %C&A = 99% Dispatcher Create W.O. Dispatch Tech PT = 7 mins. %C&A = 85% Supplier Tech Assess Problem PT = 75 mins. %C&A = 90% Billing Admin Review W.O., payroll, AP & invoice; post immediately PT = 25 mins. %C&A = 95% Billing Admin Compare invoice register to invoices and mail invoices PT = 5 mins. %C&A = 99% 1xdaily Collections Receive Cash; Post Payment 2 hrs. 0.117 hrs. 1.25 hrs. 1.25 hrs. 1.25 hrs. 1.25 hrs. 2 hrs. 2 hrs. 24 hrs. 0.417 hrs. 4 hrs. 0.0833 hrs. 480 hrs. Lead Time = 520 hrs. Process Time = 5.12 hrs. Tech Make Repair; Complete call on handheld PT = 120 mins. %C&A = 75% Verisae (Customer) Great Plains Tech Pickup Part at Parts Store PT = 75 mins. %C&A = 95% ` Excel Spreadsheet (Customer) Billing Admin Enter data into Verisae and Excel from Daily Report PT = 5 mins. %C&A = 99% 1xdaily Tech Special Order Part 10% 60% Tech Contact Tech Support As Needed Tech Get Part from Truck PT = 0 mins. 30% EDI Interf ace No EDI 120 mins. 75 mins. 75 mins. 2 hrs. 24 hrs. 4 hrs. 60 days Create Tech Support Center Create EDI Interface w/ Customers Centralize Dispatch Improve Tech Onboarding Standardize Truck Inventory Improve Tech Training; Create Sub-levels Install kanban on trucks Create Customer Billing Teams Create stnd work for invoicing Create invoice exception report Explore flat rate pricing Create Tech performance report Implement GPS Create Source preferred T & C's Separate labor & payroll Create EDI Interface w/ Verisae Establish parameters for time & parts by service type Lead Time to Invoice = 34.5 biz hrs Lead Time to Cash = 67 biz days Process Time = 5.1 biz hrs. ActivityRatio = 14.8% RFPY = 45.4% Repair Service Delivery – Request to Cash Future State Value Stream Map
  17. Metric Current State Projected Future State Projected % Improvement Complete VS Lead Time Sum 9.5 days 8.7 days 8% Complete VS Process Time Sum 5.8 hours* 5.1 hours* 12% Activity Ratio 6.8% 14.8% 118% Rolled First Pass Yield (Rolled %C&A) 1.1% 45.4% > 4,000+% # Linear Handoffs 11 6 45% LT to Invoice 86 days 35 days 59% LT to Cash 131 days 67 days 49% Freed capacity 4 FTEs* Tech Satisfaction Poor High Value Stream Transformation Results 17* (0.7 hrs reduced PT x 12,000 repairs/year) ÷ 2,080 hrs/yr/FTE = 4.0 FTEs Freed Capacity
  18. Improvement Roles and Responsibilities Who? Accountability Tool Senior Leadership What needs to happen Strategy Deployment, Value Stream transformation Frontline Workers How it will happen Daily Kaizen, Kaizen Events Middle Management StrategicTactical 18
  19. Kaizen Event Preparation: 4-6 weeks prior to the Event 19
  20. 3 Purposes of Charters: Plan, Communicate, Build Consensus 20
  21. 21 Workforce Training 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 Karen Martin Howard Z Tue Mar 10 Chino Training Center Signature: Tech book (company info, key policies and procedures, etc.) Fred SLauren A Executive SponsorDisagreement about policies. Possible Obstacles Approvals Training ManagerOthers TBD Division Manager Jose R Improve post onboarding survey results from 25% to 85% satisfaction. Lean Deployment Manager Potential Deliverables On-Call Support AnaheimJohn R Standard work re: tech onboarding & orientation Function Train all branch managers on new process. I.T. Support Tech Branch Lead Admin Define a standardized process and assign process owner. Service Tech Assure techs are functionally and technically ready to perform. Service Tech Event Goals and Objectives Cumbersome process to get Techs all the tools they need. Service Manager Service Manager High degree of variation among branches; lack of standard work. Function Higher error rate re: data entry, policy compliance, etc. than necessary. HR Coordinator Event Drivers / Current State Issues Team Members Thu Mar 12 Final Presentation Event Boundaries & Limitations Excludes improvements re: tech levels or the hiring process; $10,000 budget max for training/orientation materials. Event Coordinator Sally M Specific Conditions Service only (excludes construction) Value Stream Champion Last Step Employee completes 90 days on board. Team Lead First Step Candidate accepts offer. FacilitatorProcess Trigger Value Stream Kaizen Event Charter Event Scope Leadership Schedule Lauren A Tech Onboarding Executive Sponsor Event Name Service Delivery HR generates offer letter. FacilitatorValue Stream Champion Wed Mar 11 AnaheimAshley R Name San Bernardino Texas Ron J Mar 9, 10, 11, & 12 (Mon - Thu) 8:00 am - 5:00 pm Event Dates Start & End Times Justin C Karen Martin Fred S Interim Briefing(s) Location Justin C Corey K Signature: Gary K Name Branch Lead Admin Handheld Specialist Wendy M Barbara R Anaheim Denver & San Bernardino Johnson K Lisa B Branch Phoenix Sacramento San Diego Portland Signature: License AgreementSpell-checkSheet
  22. Kaizen Event Facilitators Wear Many Hats 22
  23. Kaizen Event Facilitator Necessary Traits • Skills / Knowledge – Problem solving (PDSA) – Improvement tools – analysis & countermeasures – Project & time management – Team building / facilitation – Coaching (asking vs. telling) – People effectiveness – from front line workers to execs; conflict mgmt • Authority / Respect – Designated change agent / influence leader – Trustworthy – Comfortable removing obstacles & reaching out to senior leadership • Personality / Energy – Challenging, yet supportive – Positive, upbeat, energetic – Pushy without irritating • Objectivity / Fairness – No attachment to the work being improved 23
  24. Kaizen Event Scoping • Define fenceposts, conditions, and limitations. • Gives the team “freedom with boundaries.” • Tells the team what they do NOT have permission to do. 24
  25. 25 Workforce Training 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 Karen Martin Howard Z Tue Mar 10 Chino Training Center Signature: Tech book (company info, key policies and procedures, etc.) Fred SLauren A Executive SponsorDisagreement about policies. Possible Obstacles Approvals Training ManagerOthers TBD Division Manager Jose R Improve post onboarding survey results from 25% to 85% satisfaction. Lean Deployment Manager Potential Deliverables On-Call Support AnaheimJohn R Standard work re: tech onboarding & orientation Function Train all branch managers on new process. I.T. Support Tech Branch Lead Admin Define a standardized process and assign process owner. Service Tech Assure techs are functionally and technically ready to perform. Service Tech Event Goals and Objectives Cumbersome process to get Techs all the tools they need. Service Manager Service Manager High degree of variation among branches; lack of standard work. Function Higher error rate re: data entry, policy compliance, etc. than necessary. HR Coordinator Event Drivers / Current State Issues Team Members Thu Mar 12 Final Presentation Event Boundaries & Limitations Excludes improvements re: tech levels or the hiring process; $10,000 budget max for training/orientation materials. Event Coordinator Sally M Specific Conditions Service only (excludes construction) Value Stream Champion Last Step Employee completes 90 days on board. Team Lead First Step Candidate accepts offer. FacilitatorProcess Trigger Value Stream Kaizen Event Charter Event Scope Leadership Schedule Lauren A Tech Onboarding Executive Sponsor Event Name Service Delivery HR generates offer letter. FacilitatorValue Stream Champion Wed Mar 11 AnaheimAshley R Name San Bernardino Texas Ron J Mar 9, 10, 11, & 12 (Mon - Thu) 8:00 am - 5:00 pm Event Dates Start & End Times Justin C Karen Martin Fred S Interim Briefing(s) Location Justin C Corey K Signature: Gary K Name Branch Lead Admin Handheld Specialist Wendy M Barbara R Anaheim Denver & San Bernardino Johnson K Lisa B Branch Phoenix Sacramento San Diego Portland Signature: License AgreementSpell-checkSheet
  26. 26 Workforce Training 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 Karen Martin Howard Z Tue Mar 10 Chino Training Center Signature: Tech book (company info, key policies and procedures, etc.) Fred SLauren A Executive SponsorDisagreement about policies. Possible Obstacles Approvals Training ManagerOthers TBD Division Manager Jose R Improve post onboarding survey results from 25% to 85% satisfaction. Lean Deployment Manager Potential Deliverables On-Call Support AnaheimJohn R Standard work re: tech onboarding & orientation Function Train all branch managers on new process. I.T. Support Tech Branch Lead Admin Define a standardized process and assign process owner. Service Tech Assure techs are functionally and technically ready to perform. Service Tech Event Goals and Objectives Cumbersome process to get Techs all the tools they need. Service Manager Service Manager High degree of variation among branches; lack of standard work. Function Higher error rate re: data entry, policy compliance, etc. than necessary. HR Coordinator Event Drivers / Current State Issues Team Members Thu Mar 12 Final Presentation Event Boundaries & Limitations Excludes improvements re: tech levels or the hiring process; $10,000 budget max for training/orientation materials. Event Coordinator Sally M Specific Conditions Service only (excludes construction) Value Stream Champion Last Step Employee completes 90 days on board. Team Lead First Step Candidate accepts offer. FacilitatorProcess Trigger Value Stream Kaizen Event Charter Event Scope Leadership Schedule Lauren A Tech Onboarding Executive Sponsor Event Name Service Delivery HR generates offer letter. FacilitatorValue Stream Champion Wed Mar 11 AnaheimAshley R Name San Bernardino Texas Ron J Mar 9, 10, 11, & 12 (Mon - Thu) 8:00 am - 5:00 pm Event Dates Start & End Times Justin C Karen Martin Fred S Interim Briefing(s) Location Justin C Corey K Signature: Gary K Name Branch Lead Admin Handheld Specialist Wendy M Barbara R Anaheim Denver & San Bernardino Johnson K Lisa B Branch Phoenix Sacramento San Diego Portland Signature: License AgreementSpell-checkSheet
  27. Sample Measurable Objectives • Reduce Lead Time from 3 days to 1 day. • Increase quality from 60% to 85%. • Reduce overall Process Time from 2.5 hours to 30 minutes. • Reduce telephone hold times from 10 to 2 minutes. • Reduce square footage from 12,000 to 7,000 sq ft. • Reduce annual turnover from 20% to 10%. • Increase employee engagement scores from 75% to 89%. 27
  28. 28 Workforce Training 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 Karen Martin Howard Z Tue Mar 10 Chino Training Center Signature: Tech book (company info, key policies and procedures, etc.) Fred SLauren A Executive SponsorDisagreement about policies. Possible Obstacles Approvals Training ManagerOthers TBD Division Manager Jose R Improve post onboarding survey results from 25% to 85% satisfaction. Lean Deployment Manager Potential Deliverables On-Call Support AnaheimJohn R Standard work re: tech onboarding & orientation Function Train all branch managers on new process. I.T. Support Tech Branch Lead Admin Define a standardized process and assign process owner. Service Tech Assure techs are functionally and technically ready to perform. Service Tech Event Goals and Objectives Cumbersome process to get Techs all the tools they need. Service Manager Service Manager High degree of variation among branches; lack of standard work. Function Higher error rate re: data entry, policy compliance, etc. than necessary. HR Coordinator Event Drivers / Current State Issues Team Members Thu Mar 12 Final Presentation Event Boundaries & Limitations Excludes improvements re: tech levels or the hiring process; $10,000 budget max for training/orientation materials. Event Coordinator Sally M Specific Conditions Service only (excludes construction) Value Stream Champion Last Step Employee completes 90 days on board. Team Lead First Step Candidate accepts offer. FacilitatorProcess Trigger Value Stream Kaizen Event Charter Event Scope Leadership Schedule Lauren A Tech Onboarding Executive Sponsor Event Name Service Delivery HR generates offer letter. FacilitatorValue Stream Champion Wed Mar 11 AnaheimAshley R Name San Bernardino Texas Ron J Mar 9, 10, 11, & 12 (Mon - Thu) 8:00 am - 5:00 pm Event Dates Start & End Times Justin C Karen Martin Fred S Interim Briefing(s) Location Justin C Corey K Signature: Gary K Name Branch Lead Admin Handheld Specialist Wendy M Barbara R Anaheim Denver & San Bernardino Johnson K Lisa B Branch Phoenix Sacramento San Diego Portland Signature: License AgreementSpell-checkSheet
  29. Proper Team – cross-functional; people who do the work being improved 29
  30. 30 Workforce Training 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 Karen Martin Howard Z Tue Mar 10 Chino Training Center Signature: Tech book (company info, key policies and procedures, etc.) Fred SLauren A Executive SponsorDisagreement about policies. Possible Obstacles Approvals Training ManagerOthers TBD Division Manager Jose R Improve post onboarding survey results from 25% to 85% satisfaction. Lean Deployment Manager Potential Deliverables On-Call Support AnaheimJohn R Standard work re: tech onboarding & orientation Function Train all branch managers on new process. I.T. Support Tech Branch Lead Admin Define a standardized process and assign process owner. Service Tech Assure techs are functionally and technically ready to perform. Service Tech Event Goals and Objectives Cumbersome process to get Techs all the tools they need. Service Manager Service Manager High degree of variation among branches; lack of standard work. Function Higher error rate re: data entry, policy compliance, etc. than necessary. HR Coordinator Event Drivers / Current State Issues Team Members Thu Mar 12 Final Presentation Event Boundaries & Limitations Excludes improvements re: tech levels or the hiring process; $10,000 budget max for training/orientation materials. Event Coordinator Sally M Specific Conditions Service only (excludes construction) Value Stream Champion Last Step Employee completes 90 days on board. Team Lead First Step Candidate accepts offer. FacilitatorProcess Trigger Value Stream Kaizen Event Charter Event Scope Leadership Schedule Lauren A Tech Onboarding Executive Sponsor Event Name Service Delivery HR generates offer letter. FacilitatorValue Stream Champion Wed Mar 11 AnaheimAshley R Name San Bernardino Texas Ron J Mar 9, 10, 11, & 12 (Mon - Thu) 8:00 am - 5:00 pm Event Dates Start & End Times Justin C Karen Martin Fred S Interim Briefing(s) Location Justin C Corey K Signature: Gary K Name Branch Lead Admin Handheld Specialist Wendy M Barbara R Anaheim Denver & San Bernardino Johnson K Lisa B Branch Phoenix Sacramento San Diego Portland Signature: License AgreementSpell-checkSheet
  31. The Purpose of Periodic Briefings 31 • Demonstrate proper problem solving • Gain commitment • Build trust between leadership (no veto power) and team • Challenge policies & other obstacles • Help people “grow” with change • Surface resistance or hidden issues
  32. 32 Workforce Training 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 Karen Martin Howard Z Tue Mar 10 Chino Training Center Signature: Tech book (company info, key policies and procedures, etc.) Fred SLauren A Executive SponsorDisagreement about policies. Possible Obstacles Approvals Training ManagerOthers TBD Division Manager Jose R Improve post onboarding survey results from 25% to 85% satisfaction. Lean Deployment Manager Potential Deliverables On-Call Support AnaheimJohn R Standard work re: tech onboarding & orientation Function Train all branch managers on new process. I.T. Support Tech Branch Lead Admin Define a standardized process and assign process owner. Service Tech Assure techs are functionally and technically ready to perform. Service Tech Event Goals and Objectives Cumbersome process to get Techs all the tools they need. Service Manager Service Manager High degree of variation among branches; lack of standard work. Function Higher error rate re: data entry, policy compliance, etc. than necessary. HR Coordinator Event Drivers / Current State Issues Team Members Thu Mar 12 Final Presentation Event Boundaries & Limitations Excludes improvements re: tech levels or the hiring process; $10,000 budget max for training/orientation materials. Event Coordinator Sally M Specific Conditions Service only (excludes construction) Value Stream Champion Last Step Employee completes 90 days on board. Team Lead First Step Candidate accepts offer. FacilitatorProcess Trigger Value Stream Kaizen Event Charter Event Scope Leadership Schedule Lauren A Tech Onboarding Executive Sponsor Event Name Service Delivery HR generates offer letter. FacilitatorValue Stream Champion Wed Mar 11 AnaheimAshley R Name San Bernardino Texas Ron J Mar 9, 10, 11, & 12 (Mon - Thu) 8:00 am - 5:00 pm Event Dates Start & End Times Justin C Karen Martin Fred S Interim Briefing(s) Location Justin C Corey K Signature: Gary K Name Branch Lead Admin Handheld Specialist Wendy M Barbara R Anaheim Denver & San Bernardino Johnson K Lisa B Branch Phoenix Sacramento San Diego Portland Signature: License AgreementSpell-checkSheet
  33. Socializing the Charter • Conversation, not merely an email attachment. • To the entire workforce who will be affected by change. • Adjust the charter if new discoveries or concerns surface. • PHYSICALLY POST THE CHARTER & have stand-up meetings around it. 33
  34. Additional Pre-Event Considerations • How much data to collect. • Collecting upfront problems, observations, and ideas. • Holding an overview session. • I.T. is nearly always a problem. • Preparing executive sponsors for kick-off. 34
  35. Kaizen Event Execution 35
  36. Rules of Engagement 1. The team starts and ends the day together and breaks together; being on time is critical. 2. The team stays 100% committed and 100% focused. – No interruptions. – All wireless devices on silent mode or off. No vibration. – No email except during breaks or 100% relevant to kaizen event. 3. Keep an open mind and consider all ideas. Ask “why?,” “what if?,” “why not?” 4. Challenge everything 5. Seek the wisdom of ten vs. the knowledge of one. 6. Rank has no privilege. 7. Finger-pointing has no place. 8. No silent objectors; don’t leave in silent disagreement; respectful disagreement is encouraged. 9. Use creativity before capital; mind before money. 10. What’s said in the room stays in the room. 36
  37. Typical Team Evolution Form Storm Norm Perform Bruce Tuckman, 1965 Adjourn (Mourn) 37
  38. Document / Analyze the Current State • Go to Gemba / observation • Spaghetti diagrams • Work breakdown structure (manufacturing) or Metrics-Based Process Mapping (office/service) • Root Cause Analysis • Surveys / audits • Videotape • “Product” samples • Floor plans / blueprints • Review of existing procedures 38
  39. 39 Metrics-Based Process Mapping: Eliminate Waste and Define Standard Work www.ksmartin.com/MBPM
  40. 40 50% Discount – CRC Press – Promo Code 081MA 0 1 0 15 6 -1 0 Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A 1 Fax PO to Sales Rep 0 0 45% 2 Review PO; clarify with customer as needed 20 2 90% Fax PO to warehouse 10 4 90% 5 6 Check inventory levels; notify Sales Rep re: status 5 4 95% Fax PO to Sales Rep 5 0.33 90% 0 20 10 5 5 0 2 4 4 0.33 45% 90% 90% 95% 90% 0 20 10 5 5 Rolled %C&A Critical Path LT Total PT Critical Path PT 5431 2 Mary Townsend Hours Worked per Day Sally Dampier Occurrences per Year Sam Parks Current State Metrics-Based Process Map Dave Morgan25-Jun-08 8 Facilitator Process Details Michael Prichard Order FulfillmentProcess Name Specific Conditions Domestic orders through sales force 37,500 Date Mapped Sean Michaels Sales Rep Ryan AustinDiane O'Shea Mapping Team LT Units Function / Department PT Units Step # ► Customer Finance Warehouse / Shipping Seconds Minutes Hours Days Seconds Minutes Hours Days
  41. 41 Current State Discoveries • Wide process variation among branches. – Techs not given consistent orientation and the tools to function properly (across all branches) – Important policies unknown – Shocking how many handoffs and “cooks in the kitchen” – CHAOS! • Degree to which new techs had negative experience • Excessive time and money to get a tech onboard
  42. 42 Target Condition • Smooth “production process” • Positive tech experience from day one • Create ability to deliver better quality to our customers more quickly • Ability to collect cash more quickly; reduce costs • Increase tech productivity • Better compliance with company policy, safety and regulatory requirements, and customer requirements; reduce risk • Free capacity in HR, I.T., Fleet/Cell phone, Service Managers, and Lead Admins • Turnover reduction
  43. Root Cause Analysis: 4 Key Tools CauseCause--andand--Effect DiagramEffect Diagram Machine Measurement Environment People Material / Info Method Budgets Submitted Late Lack of experience Time availability No sense of import No stnd spread sheet Email vs. FedEx No standard work Input rec’d late Forecast in other system Manual vs. PC System avail. No milestones $ vs. units Weather delays Dispersed sales force Changing schedule Machine Measurement Environment People Material / Info Method Budgets Submitted Late Lack of experience Time availability No sense of import No stnd spread sheet Email vs. FedEx No standard work Input rec’d late Forecast in other system Manual vs. PC System avail. No milestones $ vs. units Weather delays Dispersed sales force Changing schedule 5 Why’s Why? Why? Why? Why? Why? Check Sheets Quantify Occurrences |Equipment failure |||||||||||||Changing customer requirements w/ no adjustment to expected delivery ||||||||||Order entry error |||Staffing/absenteeism |||||Quality issue requiring rework |||||||Material shortage TallyReason |Equipment failure |||||||||||||Changing customer requirements w/ no adjustment to expected delivery ||||||||||Order entry error |||Staffing/absenteeism |||||Quality issue requiring rework |||||||Material shortage TallyReason 43
  44. Building a Lean Enterprise Potential Countermeasures 44
  45. PACE Improvement Prioritization Grid Low High Anticipated Benefit EaseofImplementation DifficultEasy 20 7 5 13 4 23 1 22 8 9 2 10 16 11 6 12 14 19 15 17 3 21 18 Kaizen Events: Focus on easiest, highest benefit Improvements 45
  46. Deliverables & Improvements Made in Tech Onboarding Kaizen Event • Created a comprehensive Tech Manual (updated policies, new defined processes) • Created a New Hire Packet Checklist • Created an Onboarding Training Tracker • Revised New Hire Onboarding Experience Survey • Trained HR, IT, Facilities, 30 hiring managers and admin staff at 5 Branches 46
  47. 3 Criteria for Proper Process Management 1. Defined and documented processes 2. 2-5 relevant KPIs for each process a. Visually displayed b. Consistently measured c. Consistently improved 3. Highly effective training 4. Sole ownership & process monitoring 47
  48. Kaizen Event Follow-up 48
  49. Who identifies relevant documentation? Who updates it? By when? Who communicates? How? To whom? Where posted? Who communicates? Via what medium? How is process performance going to be communicated to workers? Are additional visuals needed? Who owns this activity? Which value stream map(s) need to updated, who will do it and when? Who maintains training records? Who communicates? How? To whom? Who is accountable? Where posted?Post the Event Report, 30-Day List, Sustainability Plan. Update SOPs and other ISO or regulatory documents impacted by changes. Communicate and post 30-day and 60-day audit results. Communicate audit results to stakeholders and leadership team. Communication / Training Requirement Communicate to affected parties who were not advised during event. Provide training for those who missed initial training. Integrate new process into ongoing department training. Update Value Stream Map. Update training records to reflect who has been trained. Plan Who will deliver it and when? Who leads identification of training that need to be updated (ongoing and for new employees), when will training be in place? Event Dates "Go Live" Date Team Lead 30-Day Audit Date "Go Live" Location 60-Day Audit Date Sustainability Plan Executive Sponsor Value Stream Champion Facilitator Event Name Communicate process performance measurement plan. How will you sustain the improvements? Name Name Signature Signature Date Date Will there be rewards / recognition for sustaining improvements? What will corrective actions be if workers are not following new process? Who will enforce these rewards/consequences? Who monitors process performance on an ongoing basis? Who communicates the results? When, to whom, in what format? Who will lead audit & when? How will results be communicated? To whom? How will the process be adjusted, if needed? What's the plan for continuous improvement? Who will lead audit & when? How will results be communicated? To whom? How will the process be adjusted, if needed? What's the plan for continuous improvement? Who has ultimate responsibility for how process is performing? Which Kaizen team member(s) will observe the process? How will they communicate results? Who is responsible for adjusting the process, if needed? Who is responsible for finalizing process performance metrics and by when? Which team member(s) will observe the process? When? How will they communicate results? Who is responsible for adjusting the process, if needed? Process Owner Monitoring / Measurement Requirement Put in place key metrics to measure process performance; post performance. Plan Value Stream Champion Define corrective actions required if new process not being followed (rewards and consequences). Monitor process performance frequently; post results put continuous improvement plans in place. Identify process owner. Observe process one day after event is over. Talk with workers, assure they understand how process should be performed; see if there are problems. Observe process one week after event is over. Talk with workers, assure they understand how process should be performed; see if there are problems. Conduct 30-day audit. Conduct 60-day audit. 49
  50. Karen Martin, President 858.677.6799 @karenmartinopex Blog & newsletter: www.ksmartin.com/subscribe 50

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